What specific changes were made to the composition of the CPP Reference Portfolio?
The CPP Reference Portfolio now has the inclusion of emerging market equities at a 5 per cent level as well as the inclusion of foreign sovereign bonds at the 5 per cent level. Also, Canadian equities were reduced from 25 to 15 per cent and global developed market equities were increased by 5 per cent. The inclusion of emerging market equities at a 5 per cent level allows the portfolio to harness the long-term growth potential of emerging markets, consistent with our long investment horizon. Also, it helps us reduce over-exposure to the Canadian economy and avoid the “double jeopardy” effect, given that contributions to the CPP vary with the health of the Canadian economy.
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